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Renewable Fuel Standard raises prices

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I respond to the Tuesday letter “Ethanol is used as an excuse to raise prices” from Mark Borer,
president of the Ohio Ethanol Producers Association. The National Council of Chain Restaurants
respectfully disagrees with Borer’s assertions.

Many studies and academic research have clearly shown that the federal Renewable Fuel Standard
significantly increases the demand for corn and artificially and unfairly raises the price of this
essential crop and other commodities throughout the food chain.

One recent study, from PwC, estimated that by 2015 the renewable standard will raise corn prices
by nearly 27 percent, soybeans by nearly 16 percent, pork by 15 percent, potatoes by 13 percent,
wheat by 12 percent, eggs by 11.2 percent and poultry and beef by nearly 8 percent. For chain
restaurants alone, these higher costs tally up to $3.2 billion a year in additional expenses for
small-business franchisees in communities around the country, including Ohio.

It’s understandable that ethanol producers don’t want the gravy train to end; it’s been a
financial boon to their big business. But at what price?

Higher commodity costs, appalling environmental and land-use impacts and engine damage are only
a partial list of its problems.

We will continue to educate policymakers and consumers about the real-world consequences of the
Renewable Fuel Standard, and ask that Congress act to repeal this flawed policy.